Income Tax Operations In The Northern States

The Income Tax Department (ITD) has been actively working to detect tax evasion and unaccounted income, but it does not attribute the findings to specific states. In a Lok Sabha response, the government provided data on search and survey operations across the country, which include Assam and other North-Eastern states. The ITD conducts searches and surveys when it receives credible information about violations of the Income Tax Act, 1961. The operations cover diverse sectors, including real estate, manufacturing, trading, and construction. While specific details on cases and individuals, such as government contractors, cannot be disclosed due to legal prohibitions, the government did provide data on the number of prosecution cases launched in Assam and the North-Eastern states. It also noted that the finalization of tax demands and recovery of dues often face delays due to appeals and judicial proceedings. To strengthen enforcement, the government has enacted legislation like the Black Money Act, 2015, and the Benami Transactions (Prohibition) Amendment Act, 2016. It also uses data analytics to promote better tax compliance and has implemented various enforcement actions, including assessments, penalties, and prosecutions.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE

LOK SABHA
UNSTARRED QUESTION NO. 3475
TO BE ANSWERED ON
MONDAY, 11^TH AUGUST, 2025/ SRAVANA 20, 1947 (SAKA)

INCOME TAX OPERATIONS IN THE NORTHERN STATES

3475: SHRI GAURAV GOGOI:

Will the Minister of Finance be pleased to state:

a. whether the Income Tax Department has detected over 5,000 crore unaccounted income in Assam and other North-Eastern States since 2016;

b. the number of search and survey operations conducted in Assam during this period and the key sectors involved;

c. the number of these cases have resulted in prosecution, penalties or recovery of dues;

d. whether any person or Government contractor is under investigation in connection with these findings; and

e. the specific steps taken/to be taken by the Government to strengthen tax enforcement and curb financial irregularities in the region?

ANSWER

MINISTER OF STATE FOR FINANCE
(SHRI PANKAJ CHAUDHARY)

a. Investigation regarding detection of tax evasion and unaccounted income is an ongoing process and whenever any instances come to the notice of Income Tax Department (ITD), appropriate action including searches, surveys, assessment of income, levy & recovery of tax, imposition of penalty and launching of prosecution, is taken as per law, depending upon the facts and circumstances of each case.

b. ITD conducts search & seizure and survey actions as per law in relevant cases, where any credible information is received about violation of provisions of the Income Tax Act, 1961 (Act).The premises of the persons searched under the provisions of the Act are usually spread across multiple states/geographies. Accordingly, these searches and the amount of unaccounted money seized therein, cannot be attributed to any particular state(s). The persons covered in such actions are engaged in diversified businesses/professions across different sectors spread all over the country such as Real Estate, Manufacturing, Trading, Construction, Medical & Hospital, etc. Details with respect to search & seizure and survey actions conducted by the ITD in the country (including state of Assam) since 2016 are as follows:

Search & seizure actions

* – Figures are provisional

Survey actions:

*Figures are provisional

(c): On the basis of the evidence gathered during the search & seizure and survey actions carried out by the ITD and the subsequent investigation, tax assessments are finalized and a tax demand is raised. However, the income assessed and the tax thereupon get crystallized conclusively only when appeals, if any, preferred before CIT(A), ITAT, Hon’ble High Court and Hon’ble Supreme Court are decided. Further, the prosecution, penalties or recovery of dues under the Act are initiated, in applicable cases. These proceedings are also subject to a appellate/judicial proceedings. However, the year-wise details regarding number of prosecutions launched by the ITD in Assam and other North-Eastern states is provided as follows:

d. The disclosure of information in respect of specific assesses is prohibited except as per the provisions of section 138 of the Act.

e. Steps taken by the Government to strengthen tax enforcement and curb financial irregularities in the country (including the state of Assam and other North-Eastern States), are detailed as below:

i. Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 which has come into force w.e.f. 01.07.2015 has been enacted to specifically and effectively deal with the issue of black money stashed abroad.

ii. Benami Transactions (Prohibition) Amendment Act, 2016 has been enacted to comprehensively amend the Benami Transactions (Prohibition) Act, 1988 with a view to, inter alia, enable confiscation of benami property and prosecution of benamidar and the beneficial owner.

iii. Effective enforcement actions have been undertaken including expeditious investigation in foreign assets cases. Such actions include searches, surveys, enquiries, assessment of income, levy of taxes, penalties, etc. and filing of prosecution in criminal courts, wherever applicable.

iv. The data received by Income Tax Department is also used in a non-intrusive manner to NUDGE (Non-Intrusive Usage of Data to Guide and Enable) Taxpayers, primarily with objective to guide and enable them for better and enhanced compliance towards tax laws with ease.

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